Key takeaways
- BTC has risen about 1.5% in the past 24 hours and is trading above $87,000 per coin.
- This performance comes despite a broader bearish tone in the crypto market.
Bitcoin regains $87,000
Cryptocurrency markets turned positive on Wednesday after a weak start to the week, with Bitcoin, Ether and XRP trading in the green. Although price action for the three largest coins remains fragile, a short-term relief bounce may be possible over the next several hours.
Bitcoin, the market-cap leader, is trading above $87,000 per coin but could still face further losses in the near term. In an email to CoinJournal, investment analyst and Coin Bureau founder Nic Puckrin said markets may see additional selling pressure over the coming days. Nic noted:
“Bitcoin is back in the red — a chart pattern that has become too familiar as the disappointing fourth quarter nears its end. After dipping to roughly $86,000, BTC is now knocking on the door of its 100-week moving average — a strong support level near $84,800. Once again, fears around the AI bubble and uncertainty about future monetary policy appear to be driving sentiment.”
Bitcoin could continue to correct in the near term
The BTC/USD four-hour chart shows a clear downtrend, with Bitcoin underperforming since the start of the week. Price was rejected on Friday and has lost roughly 7% since that rejection.
BTC re-tested support at $85,569 on Monday, which held and allowed the price to rally toward $87,500 on Wednesday.
If the correction resumes and a daily candle closes below the $85,569 support, Bitcoin could extend losses toward the psychological $80,000 level.
The Relative Strength Index (RSI) on the four-hour chart sits at about 38, below the neutral 50 level, indicating growing bearish momentum. Additionally, the moving average convergence divergence (MACD) lines have converged, reinforcing the bearish narrative on the chart.
On the flip side, if bullish momentum returns, Bitcoin could climb toward the 61.8% Fibonacci retracement level at $94,253.